With the average American family owning 2.28 cars, it is easy to see why car insurance costs continue to be a concern. In addition to the cost of insuring any cars, trucks, and sport utility vehicles (SUVs) owned, families must also provide insurance for any other types of motorized or pull behind vehicles they may own, such as motorcycles, all terrain vehicles (ATVs), boats, campers, recreational vehicles (RVs), and utility trailers. Currently mandatory in most every state of the union, vehicle insurance costs can take a sizable bite out of any household's transportation budget, especially in large families with multiple licensed drivers. If you are currently concerned about your family's auto insurance costs and would like to enjoy saving money on premiums in the future, the following tips can help.
Improve your credit score
Auto insurance providers feel that applicants with low credit scores may be more apt to file insurance claims than those with higher credit scores. To overcome this, many insurers base their insurance rate quotes on credit scores, offering lower rates to applicants with the best credit scores. Since statistics show that good credit scores can result in paying hundreds or even thousands of dollars less in car insurance each year, doing what you can to improve yours is an excellent way to lower the costs of insuring your vehicles.
Be mindful of the miles you drive
Another bit of data used by auto insurers to set vehicle insurance rates is the number of miles driven each year. Families who proactively look for ways to combine errands and make the effort to carpool to work or school can slash the number of miles they drive each year, helping to reduce the amount of their insurance costs.
Shop frequently for better rates
Since many insurance companies use low rates to attract new business, it can be worthwhile to check insurance rates each on a quarterly or semi-annual basis. If the difference between your current policy and a competing insurance quote is substantial for the same coverage amounts, taking the time to change providers can be an effective tool in reducing the overall cost of vehicle insurance. When switching vehicle insurance providers for any reason, it is important to pay careful attention to policy coverage dates and times to ensure that no lapses of coverage will occur during the transition.
For more proactive ideas on how to cut your car insurances costs or to discuss a specific issue or need, vehicle owners should consider contacting their auto insurance provider.
